Back to top

Image: Bigstock

Are Investors Undervaluing Sanofi (SNY) Right Now?

Read MoreHide Full Article

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Sanofi (SNY - Free Report) . SNY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.87, while its industry has an average P/E of 16.37. SNY's Forward P/E has been as high as 15.37 and as low as 11.82, with a median of 13.02, all within the past year.

SNY is also sporting a PEG ratio of 1.85. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SNY's PEG compares to its industry's average PEG of 2.13. Over the past 52 weeks, SNY's PEG has been as high as 2.40 and as low as 1.73, with a median of 1.89.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SNY has a P/S ratio of 2.99. This compares to its industry's average P/S of 4.29.

Finally, investors should note that SNY has a P/CF ratio of 12.39. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SNY's P/CF compares to its industry's average P/CF of 16.51. Over the past 52 weeks, SNY's P/CF has been as high as 12.96 and as low as 10.62, with a median of 11.37.

These are just a handful of the figures considered in Sanofi's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SNY is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Sanofi (SNY) - free report >>

Published in